Many small food retailers buy and sell products that are both taxable and GST-free. Depending on the point-of-sale equipment they use, identifying and recording these sales can be difficult.
To easily work out the amount of GST you need to pay at the end of each tax period, we have designed a series of simplified accounting methods (SAMs), including one to calculate GST credits for trading stock purchases. Known as the purchases snapshot method, you can use this method if you meet the following conditions:
-> you are registered for GST
-> you operate a restaurant, café or catering business
-> your GST turnover is not more than the small business turnover threshold (currently $2 million).
There are five SAMs to choose from. Check which method best suits your business and make accounting for GST an easier task.